Mayville Engineering Company, Inc. (MEC) will acquire privately held Mid-States Aluminum Corp. (MSA) for a total consideration of approximately $96 million. The proposed acquisition is expected to close in the third quarter.
Jag Reddy, MEC president and CEO said: “MSA is an established provider of aluminum extrusions, whose history of growth and innovation, attractive margin profile, deep customer relationships and diverse end-markets are highly complementary to our existing business.”
For 60 years, MSA has served major OEMs in the recreational, building, medical and other markets. MSA operates two facilities in Fond du Lac, Wisc. that include approximately 325,000 square-feet of manufacturing space.
According to Reddy, the acquisition will accelerate the expansion of MEC’s lightweight materials fabrication.
“MSA’s state-of-the-art design, engineering and manufacturing capabilities are highly complementary to our existing operations,” Reddy said. “Providing a platform for higher-margin profitable growth within growing adjacent markets.”
The company has seen demand for aluminum and lightweight material fabrications expertise increase.
Based on current expectations and market conditions, MEC expects that the MSA acquisition will contribute between $30 – $35 million of net sales and between $4 – $6 million in adjusted EBITDA for the fiscal year 2023.
“We are excited to welcome MSA’s 250 employees to the MEC family,” Reddy said. “Our shared commitment to product innovation, performance excellence, customer-centric relationships and long-term value creation will help us further deliver on our MBX initiatives, while continuing to build a market-leading brand of scale.”
